D1 Oils goes for broke on idea as rest lose faith

Jun 24 2009 by Karen Dent, The Journal

Despite the company’s assertion it would need a capital injection to develop after 2010, Mr Prince was bullish about its prospects. “We are very confident about the potential of jatropha and we think the fundamentals of the crop are very strong,” he said.

“These are very difficult times for all companies to raise money. They are particularly difficult times if you are in a new sector that is in the process of establishing itself. …

“We are very confident we are taking the necessary steps at this stage, so we can give investors some proof of the capabilities of the crop in a year to 18 months’ time.” He said talks with BP to dissolve the joint venture would have “a number of advantages” for D1.

“Part of what we are negotiating here is bringing the best aspects of the joint venture under our full control,” said Mr Prince. Vinay Bedi, divisional director at Brewin Dolphin in Newcastle, says the issue is crucial for D1’s future – and shareholder confidence.

He said: “This situation needs to be resolved successfully, then the group can go about demonstrating that it can go forward and sell its products and services

“It is a very difficult market and when you are in a new industry and you are trying to develop your understanding of the industry and educate a lot of other people, there are always going to be teething difficulties.

“But there is a small chink of hope there that they can move forwards.”